Statoil is looking to make a decision this year on developing the Kayak oil discovery it made last week in the Barents Sea offshore Norway.

This comes hot on the heels of the same operator submitting a development plan for the Snefrid Nord gas discovery in the Norwegian Sea as well as spudding the first of three planned exploration wells offshore the U.K., SEN hears.

“The most likely scenario for Kayak, if it’s developed, is a subsea tieback to Johan Castberg, although this is yet to be decided,” Statoil told SEN, adding that a decision on any Kayak development is expected later this year.

Statoil made the Kayak find with exploration well 7219/9-2, which lies in the same license that holds Johan Castberg, using the Songa Enabler semisubmersible rig.

The Norwegian state operator estimates that Kayak holds between 25 MMboe and 50 MMboe of recoverable reserves and could “provide valuable additional volumes for the Johan Castberg development.”

“The discovery also opens other exploration opportunities in the same area. The Kayak well has for the first time proven resources in this type of play in the Barents Sea,” Statoil added.

Jez Averty, senior vice president for exploration for Statoil’s Norway and the U.K. operations, said the company is pleased to have proven resources in a play type that has not been explored.

“This opens interesting opportunities,” Averty said in a company statement. “Efforts will be made to find a commercial solution for the Kayak discovery toward the Johan Castberg license and to bring out other similar prospects in the Barents Sea.”

Avertty added “There may be additional resources in this structure, and we will now analyze the acquired data and consider possible appraisal of the discovery.”

In a separate statement, Italian partner Eni said “This discovery is in line with Eni’s ‘near field’ exploration strategy that, in case of success, allows the exploitation of the reserves thanks to the synergies with future producing infrastructures.”

The Kayak well lies in production license 532 (PL 532) and was drilled 23 km (14 miles) southwest of the Johan Castberg discovery well 7220/8-1.

Well 7219/9-2 encountered oil in two sandstone intervals with thicknesses of 27 m (89 ft) and 18 m (59 ft), with moderate to poor reservoir quality in the upper part of the Kolje Formation. The oil-water contact was not encountered. Reservoir rocks were not encountered in the lower part of the Kolje Formation, according to the Norwegian Petroleum Directorate.

The well was drilled to a vertical depth of 2,532 m (8,307 ft) below the sea surface and was terminated in the Stø Formation in the Middle Jurassic. The water depth of the probe is 336 m (1,102 ft).

Snefrid North Plan

Just before the Kayak discovery was unveiled, Statoil and its partners decided to move forward with development of the deepwater Snefrid Nord gas discovery in the Norwegian Sea.

The find is scheduled to produce first gas in late 2019 and will be tied back to Aasta Hansteen Field. Snefrid Nord has a water depth of 1,312 m (4,305 ft).

A supplement to the plan for development and operation of the Aasta Hansteen field has been handed to authorities, laying out plans for the Snefrid Nord development.

The capex for the Snefrid Nord project is pegged at about $143.2 million, Statoil said.

Snefrid Nord was discovered in 2015. Recoverable reserves are estimated at around 5 Bcm (176.5 Bcf) of gas.

The development concept includes one well in a single-slot subsea template. This will be tied back to the Aasta Hansteen platform through the Luva template 6 km (4 miles) away. Snefrid Nord will produce 4 MMcm/d (141.2 MMcf/d) of gas in the plateau phase, the planned productive life being five to six years.

Apart from the single-slot subsea template, Snefrid Nord will require a suction anchor, umbilicals and flowlines.

Aker Solutions will supply the Snefrid Nord facilities. The subsea template and suction anchor mooring it to the seabed will be delivered by Aker Solutions at Sandnessjøen. The umbilicals will be delivered by Aker Solutions in Moss, Norway.

Aker Solutions also supplied the subsea equipment for the Aasta Hansteen development project.

Subsea 7 will deliver flowlines and spools in addition to performing all subsea installations. Subsea 7 is also a supplier to Aasta Hansteen.

By using using the same supplier for both projects Statoil said the company “expects to capture synergies.”

“Aasta Hansteen is a strategically important development as the platform and Polarled pipeline open a new area in the Norwegian Sea for gas exports to Europe,” Siri Espedal Kindem, senior vice president for operations north in Statoil, said in a news release. “The projects also establish a new infrastructure, which will create opportunities for future field development projects in the area. Snefrid Nord is an excellent example of this.”

Statoil operates Snefrid Nord with a 51% stake, while Wintershall has 24%, OMV holds 15% and ConocoPhillips has 10%.

Exploration Campaign Kickoff

Across the meridian line, Statoil has spudded the first well in a three-well exploration campaign on the U.K. Continental Shelf.

Statoil told SEN that the Transocean Spitsbergen semisubmersible rig spudded the Mariner Segment 9 exploration well on July 5.

The three wells will be drilled in a continuous campaign that is expected to last for two to three months, Statoil said, adding Mariner Segment 9 “could prove additional resources and increase the extent of the Mariner heavy oil field.”

Mariner Segment 9 is expected to take between 15 and 25 days to complete.

The rig will then move to drill the Jock Scott prospect on the underexplored margins of the Viking Graben. This probe is due to be completed in 20 to 40 days.

The last well of the campaign will be the Verbier probe in the Moray Firth area. This well is expected to take between 30 and 70 days to complete.

Partners in Mariner Segment 9 are Statoil (65.1111%), JX Nippon (20%), Siccar Point Energy (8.889%) and Dyas (6%).

Jock Scott partners are Statoil (75%) and BP (25%).

Verbier partners are Statoil (70%), Jersey Oil and Gas (18%) and CIECO E&P (12%).

Statoil is the operator for the Mariner Segment 9, Jock Scott and Verbier developments.

—Steve Hamlen